senate Bill S6515

2011-2012 Legislative Session

Requires vacancy lease and renewals of leases for rent regulated housing accommodations to be for a term of 1 year

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 21, 2012 committed to rules
May 02, 2012 advanced to third reading
May 01, 2012 2nd report cal.
Apr 30, 2012 1st report cal.606
Feb 21, 2012 referred to housing, construction and community development

Votes

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Apr 30, 2012 - Housing, Construction and Community Development committee Vote

S6515
5
3
committee
5
Aye
3
Nay
0
Aye with Reservations
0
Absent
0
Excused
0
Abstained
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Housing, Construction and Community Development Committee Vote: Apr 30, 2012

S6515 - Bill Details

Current Committee:
Law Section:
Emergency Tenant Protection Act of 1974
Laws Affected:
Amd §10, Emerg Ten Prot Act of 1974; amd §26-511, NYC Ad Cd

S6515 - Bill Texts

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Requires vacancy leases and renewals of leases for rent regulated housing accommodations to be for a term of one year.

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BILL NUMBER:S6515

TITLE OF BILL:
An act to amend the emergency tenant protection act of nineteen seven-
ty-four and the administrative code of the city of New York, in relation
to providing that vacancy leases and renewals thereof for rent regulated
housing accommodations shall be for a term of one year

PURPOSE:
To limit renewal leases under rent stabilization to a term of one year.

SUMMARY OF PROVISIONS:
This bill amends the emergency tenant protection act of 1974 and the
rent stabilization law of 1969 to provide that on and after January 1,
2013, any renewal of stabilized leases will be for a term of one year.

JUSTIFICATION:
Each year increases in rent for stabilized apartments are limited by the
guidelines issued by rent guidelines boards for leases which are due for
renewal on and after October 1st each year. The board's guidelines are
intended to reflect the financial data it has relied upon from the prior
year to determine the price index of operating costs to establish guide-
lines for the coming year. Forecasting the proper guidelines for the
upcoming year based upon prior data is difficult and forecasting based
upon further speculation using outdated economic data is even more
difficult and sometimes not reliable. It can be a difficult decision
for tenants who must choose whether to select a one year or two year
lease renewal based upon uncertain economic data. A tenant may chose to
forgo a one year lease and incur a larger increase to provide certainty
in rent for a longer period, but they may be sacrificing a lower actual
increase than they would face with two successive one year leases. At
the same time, maintaining two year leases and their related guidelines
is prejudicial to property owners whose costs fluctuate wildly. Owner
and tenants need a rent guidelines mechanism which bests reflects actual
costs. By contrast, the rent control system has long been bases upon a
system of one year increases.

LEGISLATIVE HISTORY:
New Bill.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect immediately.

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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6515

                            I N  S E N A T E

                            February 21, 2012
                               ___________

Introduced  by  Sen.  YOUNG  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Housing, Construction  and
  Community Development

AN  ACT  to amend the emergency tenant protection act of nineteen seven-
  ty-four and the administrative code  of  the  city  of  New  York,  in
  relation  to  providing  that  vacancy leases and renewals thereof for
  rent regulated housing accommodations shall be for a term of one year

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Subdivisions  a  and  (a-1) of section 10 of section 4 of
chapter 576 of the laws  of  1974,  constituting  the  emergency  tenant
protection  act  of  nineteen  seventy-four, subdivision a as amended by
chapter 234 of the laws of 1984 and  subdivision  (a-1)  as  amended  by
section  8  of  part B of chapter 97 of the laws of 2011, are amended to
read as follows:
  a. For cities having a population of less than one million  and  towns
and  villages, the state division of housing and community renewal shall
be empowered to implement this  act  by  appropriate  regulations.  Such
regulations  may encompass such speculative or manipulative practices or
renting or leasing practices as the state division of housing and commu-
nity renewal determines constitute or are likely to cause  circumvention
of  this act. Such regulations shall prohibit practices which are likely
to prevent any person from asserting any right or remedy granted by this
act, including but not limited to retaliatory  termination  of  periodic
tenancies and shall require owners to grant a new one or two year vacan-
cy or renewal lease at the option of the tenant; PROVIDED, HOWEVER, THAT
FOR  VACANCY  AND  RENEWAL  LEASES WHICH TAKE EFFECT ON OR AFTER JANUARY
FIRST, TWO THOUSAND THIRTEEN, SUCH REGULATIONS SHALL REQUIRE  OWNERS  TO
GRANT  A  NEW ONE YEAR VACANCY OR RENEWAL LEASE, except where a mortgage
or mortgage commitment existing as of the local effective date  of  this
act  provides that the owner shall not grant a one-year lease; and shall
prescribe standards with respect to the terms and conditions of new  and
renewal  leases,  additional  rent  and such related matters as security
deposits, advance rental payments, the use of escalator clauses in leas-
es and provision for increase in rentals for garages and other ancillary
facilities, so as to insure that the level of rent  adjustments  author-
ized  under  this  law  will  not be subverted and made ineffective. Any

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14418-02-2

S. 6515                             2

provision of the regulations permitting an owner to refuse  to  renew  a
lease on grounds that the owner seeks to recover possession of the hous-
ing accommodation for his own use and occupancy or for the use and occu-
pancy  of  his  immediate family shall require that an owner demonstrate
immediate and compelling need and shall not apply where a member of  the
housing  accommodation  is  sixty-two  years of age or older, has been a
tenant in a housing accommodation in that building for twenty  years  or
more,  or has an impairment which results from anatomical, physiological
or psychological conditions, other than addiction to alcohol,  gambling,
or any controlled substance, which are demonstrable by medically accept-
able  clinical  and  laboratory  diagnostic  techniques,  and  which are
expected to be permanent and which prevent the tenant from  engaging  in
any substantial gainful employment.
  [(a-1)] A-1. provides that, notwithstanding any provision of this act,
the  legal  regulated  rent for any vacancy lease entered into after the
effective date of this subdivision shall be as  hereinafter  set  forth.
The  previous  legal regulated rent for such housing accommodation shall
be increased by [the following: (i) if the vacancy lease is for  a  term
of  two years,] twenty percent of the previous legal regulated rent[; or
(ii) if the vacancy lease is for a term of one year the  increase  shall
be  twenty  percent  of the previous legal regulated rent less an amount
equal to the difference between (a) the two year renewal lease guideline
promulgated by the guidelines board of the county in which  the  housing
accommodation  is  located  applied to the previous legal regulated rent
and (b) the one year renewal lease guideline promulgated by  the  guide-
lines  board of the county in which the housing accommodation is located
applied to the previous legal regulated rent]. In addition, if the legal
regulated rent was not increased with respect to such  housing  accommo-
dation  by  a  permanent vacancy allowance within eight years prior to a
vacancy lease executed on or after the effective date of  this  subdivi-
sion,  the  legal  regulated  rent may be further increased by an amount
equal to the product resulting  from  multiplying  such  previous  legal
regulated  rent by six-tenths of one percent and further multiplying the
amount of rent increase resulting therefrom by the greater  of  (A)  the
number  of  years  since  the  imposition  of the last permanent vacancy
allowance, or (B) if the rent was not increased by a  permanent  vacancy
allowance  since  the  housing accommodation became subject to this act,
the number of years that such housing accommodation has been subject  to
this  act.  Provided  that if the previous legal regulated rent was less
than three hundred dollars the total increase  shall  be  as  calculated
above  plus  one  hundred dollars per month.  Provided, further, that if
the previous legal regulated rent was at least three hundred dollars and
no more than five hundred dollars in no event shall the  total  increase
pursuant to this subdivision be less than one hundred dollars per month.
Such  increase  shall be in lieu of any allowance authorized for the one
or two year renewal component thereof, but shall be in addition  to  any
other  increases authorized pursuant to this act including an adjustment
based upon a major capital improvement, or a substantial modification or
increase of dwelling space or services, or installation of new equipment
or improvements or new furniture or furnishings provided in  or  to  the
housing  accommodation pursuant to section six of this act. The increase
authorized in this subdivision may not be implemented more than one time
in any calendar year,  notwithstanding  the  number  of  vacancy  leases
entered into in such year.
  S  2.  Paragraphs  4, 5-a and 12 of subdivision c of section 26-511 of
the administrative code of the  city  of  New  York,  paragraph  5-a  as

S. 6515                             3

amended  by  section  7 of part B of chapter 97 of the laws of 2011, are
amended to read as follows:
  (4)  includes  provisions  requiring owners to grant a one or two year
vacancy or renewal lease at the option of the tenant; PROVIDED, HOWEVER,
THAT FOR VACANCY AND RENEWAL LEASES WHICH TAKE EFFECT ON OR AFTER  JANU-
ARY  FIRST,  TWO  THOUSAND  THIRTEEN,  SUCH CODE SHALL REQUIRE OWNERS TO
GRANT A NEW ONE YEAR VACANCY OR RENEWAL LEASE, except where  a  mortgage
or  mortgage  commitment  existing  as  of April first, nineteen hundred
sixty-nine, provides that the mortgagor  shall  not  grant  a  one  year
lease;
  (5-a)  provides  that,  notwithstanding any provision of this chapter,
the legal regulated rent for any vacancy lease entered  into  after  the
effective  date  of  this  paragraph shall be as hereinafter provided in
this paragraph. The previous  legal  regulated  rent  for  such  housing
accommodation  shall  be increased by [the following: (i) if the vacancy
lease is for a term of two years,] twenty percent of the previous  legal
regulated  rent[; or (ii) if the vacancy lease is for a term of one year
the increase shall be twenty percent of  the  previous  legal  regulated
rent  less  an  amount  equal to the difference between (a) the two year
renewal lease guideline promulgated by the guidelines board of the  city
of New York applied to the previous legal regulated rent and (b) the one
year  renewal lease guideline promulgated by the guidelines board of the
city of New York applied to the previous legal regulated rent]. In addi-
tion, if the legal regulated rent was not increased with respect to such
housing accommodation by a  permanent  vacancy  allowance  within  eight
years  prior  to a vacancy lease executed on or after the effective date
of this paragraph, the legal regulated rent may be further increased  by
an  amount equal to the product resulting from multiplying such previous
legal regulated rent by six-tenths of one percent and further  multiply-
ing  the  amount  of rent increase resulting therefrom by the greater of
(A) the number of years since  the  imposition  of  the  last  permanent
vacancy  allowance,  or (B) if the rent was not increased by a permanent
vacancy allowance since the housing accommodation became subject to this
chapter, the number of years that such housing  accommodation  has  been
subject  to  this chapter. Provided that if the previous legal regulated
rent was less than three hundred dollars the total increase shall be  as
calculated  above plus one hundred dollars per month. Provided, further,
that if the previous legal regulated rent was  at  least  three  hundred
dollars  and  no  more  than  five hundred dollars in no event shall the
total increase pursuant to this  paragraph  be  less  than  one  hundred
dollars  per  month.  Such  increase  shall  be in lieu of any allowance
authorized for the one or two year renewal component thereof, but  shall
be  in addition to any other increases authorized pursuant to this chap-
ter including an adjustment based upon a major capital improvement, or a
substantial modification or increase of dwelling space or  services,  or
installation  of  new  equipment  or  improvements  or  new furniture or
furnishings provided in or to the housing accommodation pursuant to this
section. The increase authorized in this paragraph  may  not  be  imple-
mented  more  than  one  time  in any calendar year, notwithstanding the
number of vacancy leases entered into in such year.
  (12) permits subletting of units  subject  to  this  law  pursuant  to
section  two hundred twenty-six-b of the real property law provided that
(a) the rental charged to the subtenant does not exceed  the  stabilized
rent  plus  a  ten  percent  surcharge payable to the tenant if the unit
sublet was furnished with the tenant's furniture;  (b)  the  tenant  can
establish  that at all times he or she has maintained the unit as his or

S. 6515                             4

her primary residence and intends to occupy it as such at the expiration
of the sublease; (c) an owner may terminate the tenancy of a tenant  who
sublets or assigns contrary to the terms of this paragraph but no action
or  proceeding  based  on  the  non-primary residence of a tenant may be
commenced prior to the expiration date of his or her lease; (d) where an
apartment is sublet the prime tenant shall retain the right to a renewal
lease and the rights and status of a tenant in occupancy as they  relate
to  conversion  to  condominium  or  cooperative  ownership; (e) where a
tenant violates the provisions of subparagraph (a) of this paragraph the
subtenant shall be entitled to damages of three times the overcharge and
may also be awarded attorneys fees and interest from  the  date  of  the
overcharge  at  the  rate  of interest payable on a judgment pursuant to
section five thousand four of the civil practice law and rules; (f)  the
tenant  may  not  sublet  the  unit  for more than a total of two years,
including the term of the proposed sublease, out of the four-year period
preceding the termination  date  of  the  proposed  sublease;  PROVIDED,
HOWEVER,  THAT  FOR  SUBLEASES COMMENCING ON OR AFTER JANUARY FIRST, TWO
THOUSAND THIRTEEN, A TENANT MAY NOT SUBLET THE UNIT FOR  MORE  THAN  ONE
YEAR.  The provisions of this subparagraph shall only apply to subleases
commencing on and after July first, nineteen hundred  eighty-three;  (g)
for  the  purposes  of  this  paragraph  only,  the term of the proposed
sublease may extend beyond the term  of  the  tenant's  lease.  In  such
event, such sublease shall be subject to the tenant's right to a renewal
lease. The subtenant shall have no right to a renewal lease. It shall be
unreasonable  for  an  owner  to  refuse to consent to a sublease solely
because such  sublease  extends  beyond  the  tenant's  lease;  and  (h)
notwithstanding  the  provisions  of section two hundred twenty-six-b of
the real property law, a not-for-profit hospital shall have the right to
sublet any housing accommodation leased by it to its affiliated  person-
nel  without  requiring  the landlord's consent to any such sublease and
without being bound by the provisions of subparagraphs (b), (c) and  (f)
of  this paragraph.  Commencing with the effective date of this subpara-
graph, whenever a not-for-profit hospital executes a renewal lease for a
housing accommodation, the legal regulated rent shall be increased by  a
sum equal to fifteen percent of the previous lease rental for such hous-
ing  accommodation,  hereinafter  referred  to  as  a vacancy surcharge,
unless the landlord shall have received within  the  seven  year  period
prior  to  the  commencement  date  of  such  renewal  lease any vacancy
increases or vacancy surcharges allocable to the said  housing  accommo-
dation.  In  the event the landlord shall have received any such vacancy
increases or vacancy surcharges  during  such  seven  year  period,  the
vacancy  surcharge  shall  be reduced by the amount received by any such
vacancy increase or vacancy surcharges.
  S 3. This act shall take effect immediately; provided that:
  (a) the amendments to section 10 of the  emergency  tenant  protection
act  of  nineteen  seventy-four  made  by  section one of this act shall
expire on the same date as such act expires and  shall  not  affect  the
expiration  of  such act as provided in section 17 of chapter 576 of the
laws of 1974; and
  (b) the amendments to section 26-511 of chapter 4 of title 26  of  the
administrative  code of the city of New York made by section two of this
act shall expire on the same date as such  law  expires  and  shall  not
affect  the  expiration  of such law as provided under section 26-520 of
such law.

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